Hi, Graham Hill here, thank you so much for visiting my blog, I hope you learn a lot and as a result end up driving a great car. In order to do so you can get all the information you need by buying my book, An Insider Guide To Car Finance or use me to finance your next car. Happy driving.

Banks are lending less to leasingcompanies making life even more difficult for small businesses to secure funding. As of 31st March 2011 lending to the leasing companies was down by 16% from £28.4 billions the previous year to £23.8 billions. Leasing is seen by many small businesses as an alternative way to fund their vehicles and equipment as conventional borrowing from the banks is, for many, impossible. This has led to many companies and individuals extending leases rather than replacing although some manufacturers such as Mercedes and Citroen have stopped extending putting more strain on the lenders as well as clients whose credit is deteriorating.

The year on year drop looks bad considering the reported improvement in the economy but if you go back to the pre crunch days of 2008 we are now down by 35%.

This is bad news and makes it even more important to use a qualified lease broker, rather than a cheap online bucket shop, to provide your next lease. If you chase the lowest rates you enter into a dangerous game.

The companies providing them will only take the top few % of applications because with reduced margins they are looking for the very safest of clients. Fail a couple of times in underwrite and you will be declined, even by the less competitive lenders, because you’ve now clicked up several credit searches.

Do you have views you would like to share? Please let me know? By Graham Hill

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